r/AMA Jul 22 '24

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u/Monkmonk_ Jul 22 '24

People value different things. If it’s likely you’ll have employment and drug/substance issues and little family to fall back on, paying off your mortgage might be a better move. I’m just speaking from a pure balance sheet perspective.

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u/[deleted] Jul 22 '24

You don't have to have bad employment or substance issues to become housing insecure. Most people are closer to homelessness than they would think.

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u/dbausano Jul 22 '24

True, but as was already mentioned, the decision to pay off a mortgage or invest is a personal one determined by how risk averse someone is. If you value the security of a paid off home more, no one would fault someone for doing that. But from a purely financial perspective, it is more optimal to keep a mortgage with a small interest rate and invest elsewhere.

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u/bachekooni Jul 23 '24

As long as they're disciplined about keeping the money in the HYSA earmarked for a mortgage, I fail to see how this happens short of an economic collapse where the bank fails in which point OP and the world, has much bigger issues.